Mr. Fergal Mulligan:

The answer is that the pole and duct network is 30 and 40 years old. A lot of poles could even be 50 years old. The network that is being rent is being upgraded by Eir, as a private company. When the State is choosing that pole network rental over 25 years, Eir is currently spending tens of millions of euro upgrading that pole and duct network, with the view of getting rental over 25 years. It is the same as renting a house. The landlord is required to upgrade that house and make it fit for purpose for the tenant, which is NBI, and then it is only allowed to get a regulated rate of return. The regulator is the key player to make sure that Eir only receives what is a reasonable rate of return on the capital cost it outlays over the next five or six years replacing any poles or upgrading all the ducts.